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Celanese Case Group 2 - Coggle Diagram
Celanese Case Group 2
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Possible Solutions
Simplify the OSM process in order for employees and project workers to better be able to fully grasp and complete them
Define service level agreements to every service provided by Celanese to limit confusion and assign accountability
Prioritizing the IT projects/departments in order to allocate sufficient capital and resources would allow for Celanese to enough budget and flexibility to create enact any changes necessary that were recommended
Celanese needs to develop a strategy to improve its IT operations and processes. They can also follow the recommendations from HP and mix them with their solutions to specific problems faced at Celanese. They also need to get full support from the IT directors and CIO so they can have their endorsements.
[SOLUTION 1 TO PROBLEM 1, Kome]
If Celanese can focus on improving their IT operations and processes, they will be better equipped to deal with the deep budget costs.
[PROS, Kome]
This could cause Celanese to lose focus in other important areas such as customer applications.[CONS, Kome]
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Key Problems
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Differing perceived value of SLAs by the IT groups. Infrastructure holds SLAs as a higher priority while the Demand group doubts the ability to deliver on the SLAs
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Completion of OSMs could have significant delays and take several months to get approval in order to complete.
After Celanese finished their ITIL assessment, HP had evaluated that Celanese's IT operations were below average and that their processes were at level 2 on HP's 5-point process maturity model. [PROBLEM 1, Kome]
Celanese never really focused on their internal IT projects or on improving their IT operations. [HOW IT HAPPENED, Kome]
Celanese was too focused on meeting their customer's application needs than on improving their own operations.
[WHAT IS THE CAUSE? Kome]
This problem exists because many people (such as the IT directors and the CIO of Celanese) are skeptical of the benefits of re-engineering the IT processes and are also unclear of the value that could be obtained from an increase in ITIL process maturity. They also did not follow the recommendations from HP. [WHY DOES THE PROBLEM EXIST? Kome]
The consequence is that their IT operations and processes are very behind compared to other organizations.
[WHAT IS THE CONSQUENCE? Kome]
The IT group isn't prepared for the deep budget cuts they are now facing. [HOW DID IT IMPACT THE IT GROUP? Kome]
Relevant Facts
Celanese was one of the largest producers of acetyl products in the world and a global leader in high-performance engineered polymers.
Celanese was able to cut costs from $130 million to about $85 million from 2001 to 2005 implementing a single instance ERP system globally.
Only projects that supported the company's and yielded revenue would be approved due to the IT budget being slashed by 30%.
The HP assessment recommendations were not followed by Celanese due to the small support of ITIL from the IT directors and the CIO of Celanese. [Kome]
Timeline
What Happens First?
- Recommendations provided were to formalize the SLM process to include an SLA for every service, move to a single or federated tool solution, and create a standard documentation process.
- Celanese received an IT Service Management score of 45.6% (below average), an average ITIL maturity rating of 2/5 (repeatable), risk to reliable service delivery was rated as 'high', and service level, problem, change, release, configuration and availability management were found to be weak.
- Due to budget constraints, Celanese executives cannot compromise on how to proceed with developing IT after receiving such a low evaluation.
1.Celanese took an ITIL assessment that evaluated their IT operations and gave them recommendations on how to improve their IT operations. [Kome]
- Several initiatives were created and executed in 2008-2009 to prioritize and develop Celanese's ITIL projects. However, many routes were met with nonpermissible obstacles which prevented success from occurring.